28 02, 2022

Tax Audit Defense: What It Is and How It Can Help

By |2022-02-24T23:31:35+00:00February 28, 2022|0 Comments

Tax time. For some it can be a time of uncertainty, but it doesn’t have to be. Professional accounting firms can help. Some firms, like ours, go so far as to include tax audit defense, which we’ll explain below!

What it is

Perhaps a good way to think about a tax audit defense is a “probably not, but just in case.”

To clarify, tax audit defense means your professional accounting team can be by your side and help you through an audit should you receive a notice from the IRS or a state agency.

But this courtesy only extends to those who had the firm file on their behalf to begin with.

While we can’t predict the chance of your tax return getting audited, we can say if we file your return, you receive $1,000,000 Tax Defense Audit™ as well as Identify Theft Protection for our individual 1040 clients. These added bonuses last for the entire tax year.

How it can help

Being a Protection Plus partner means a lot of things—including $1 million in audit defense services used to help find a resolution in the event of an audit. It means having an experienced and qualified team on your side.

In a nutshell, we offer all of our clients the extra protection of tax audit defense as part of their returns.

So, you can rest easy when you let us handle your tax returns and filing up front. Then you can focus on growing your business, enjoying more you time and all the other important things in your life.

And on the rare chance, your tax return gets audited, we’ll invest up to $1,000,000 in services to help resolve it.

Basically, we can help with all the taxing details!

Questions?

This is what we are here for. In fact, we love this stuff! If you have questions about filing taxes, tax audit defense or other accounting inquires, get in touch with us! You can find us on Facebook, Instagram and LinkedIn.

Feel free to send us an email at [email protected] or call the office at (704) 919-3220 to schedule your free consultation if you prefer.

Summary

Finally, discover more about our firm—who we are and what we do—among other financial news and tips when you continue to read our blogs!

28 01, 2022

Tax Tip: The Home Office Deduction for Small Business Owners

By |2022-01-26T21:18:25+00:00January 28, 2022|0 Comments

Have you recently started your own home-based business or transitioned to primarily working from home? The home office deduction for small business owners may be something you qualify for!

What to know

Taxpayers who use part of their home or a separate structure on their property as their primary place of business may qualify for the home office deduction for small business owners.

For the record, “home” in this case applies to a house, condo, apartment, mobile home, houseboat or similar dwellings. The home office deduction for small business owners is also available to both homeowners and renters.

Next, determine eligibility by seeing if you meet the two basic requirements. First, you must use a designated area of your home for regular or exclusive business use.

To clarify, you can’t claim the home office deduction if you bring work home from the office and complete it in the family den.

The space is not used exclusively, or regularly, for business purposes only. The family also uses the den for recreational activities.

This brings us back to the other basic requirement. Secondly, the space must be the principal place of your business.

However, it doesn’t necessarily have to be the only place you conduct business.

For example, you may have an office away from home. But if you still meet with clients or customers and conduct regular business from a specific area of your home, you may be able to deduct a portion of expenses.

Methods to calculate

There are two basic methods used to calculate the home office deduction for small business owners. For starters, there is the simplified option.

This option significantly reduces the burden of recordkeeping. It allows qualified taxpayers to multiply a specified rate by the square-footage of your home office.

In this case, the designated rate is $5 per square foot. The maximum amount of square footage you can claim with the simplified option is 300.

Another way to determine eligible expenses is to use the regular method. With this method, taxpayers figure out the percentage of the home used for business activities to deduct indirect expenses. Direct expenses with proper records may be deducted in full.

Summary

Now that we shared the basic requirements of eligibility and methods of calculating deductions, are you asking yourself if it applies to you? A good way to find out if this applies to you is to schedule a free consultation with us. A good way to find more financial news, tax guidance and more is by reading our other blogs!

27 08, 2021

The Employee Retention Credit: How It Can Help Your Business

By |2022-05-09T20:38:02+00:00August 27, 2021|0 Comments

Well, 2020 sure was one for the books! And, it looks like 2021 will have a similar streak. However, you—and your employees—don’t have to go through it all alone. In fact, by using the Employee Retention Credit when doing your taxes, you can give your business some help. Wondering what it is or how it works? We’ll go into detail below.

About the Employee Retention Credit

The Employee Retention Credit works as a refundable tax credit. Essentially, the credit can be applied to specific employment taxes.

Still don’t get it? The quick and easy definition is that this refundable credit helps your business keep paying its staff.

The details

Here’s how the Employee Retention Credit works:

  • Businesses are eligible to receive the ERC and Payroll Protection Program (PPP), but wages eligible for the ERC cannot be paid with PPP funds.
  • For tax year 2021, the credit is 70% of qualified wages paid per employee, at up to $28,000 a year.
  • For tax year 2020, the credit is up to 50% of each employee’s qualified wages, at up to $5,000 for the year.
  • Employers with 500 or fewer full-time employees can apply the ERC towards all qualified wages paid to employees during those quarters.

How do I know if my business is eligible?

Two different factors will determine whether or not employers receive eligibility. As mentioned above, you must have one or both of these factors impacting your business during the quarter you want to apply the credit.

The first eligibility factor is marked by a significant decline in gross receipts. That exact percentage is a 50 percent drop or higher. You must compare a quarter in the current tax year to the same quarter in the previous year.

The second occurs when your business must deal with partial or full suspension of its operations, on account of a government order.

Summary

We have a couple questions for you now! Do you meet one or more of these qualifications? Or are you still unsure? Contact Todd Greene, so we can help you determine if your business qualifies for the Employee Retention Credit. Not to mention, we can also help with your financial planning too! Learn all about our services here.

28 06, 2021

9 Tips for Being Proactive About Your Business’ Tax Planning

By |2021-08-25T17:04:19+00:00June 28, 2021|0 Comments

Owning and operating a small business is exciting, but with so many moving parts, it’s good rule of thumb to plan ahead. This includes your business’ finances. These helpful tips for being proactive about your business’ tax planning will save you time and money in the long run.

The sooner you get organized, the better.

This entails understanding the basics of the federal and state tax laws applied to businesses. Be prepared for and aware of what and when specific taxes are due. Know what you can deduct and what you should track.

Create a calendar.

Use a calendar to highlight all those important tax dates and deadlines. For example, a tax calculator lets you input each date payroll deposits are due. You can include filing deadlines for W2s and 1099s as well.

Make a payment plan.

Consider making quarterly payments rather than a large yearly lump sum. However, you may need to pay estimated tax payments to avoid penalties at the end of the year.

Maintain good records!

This is a one of the best tips for being proactive about your business’ tax planning. Save all receipts that relate to business expenses throughout the year. Keep track of all income statements and balance sheets too.

Deduct your home office.

Now more than ever, we are working from home. Did you know you can calculate the square footage of your home-work space and deduct a portion of the expenses? This includes expenses like utilities, computer equipment and mortgage interest payments, for example.

Deduct car expenses.

Again, this circles back to keeping meticulous records. It also involves a little calculation like the home office. Figure out what percentage of car use is business and deduct it from your overall car expenses.

Start a retirement fund.

There are certain IRA accounts and retirement plan contributions that are tax deductible. Best way to know? Work with a tax expert.

Consider charitable contributions.

Being socially responsible pays off. Besides adding meaning to your company’s core values, getting employees involved in giving back is smart business. In the end, you will qualify for specific tax breaks.

Hire a professional!

We saved the best out of our tips for being proactive about your business’ tax planning for last! Business owners are responsible for filing and paying taxes properly. Rather than stress and possibly miss something, let the professionals (us) handle your tax planning all year long!

Summary

Todd Greene are the professionals your small business needs. From knowing the current tax laws to creating a tailored tax plan for your business, we start by meeting with you. We continue to meet with you throughout the year and together manage your business’ financials.

For more helpful tax tips, advice and general information about our services, continue to read our blogs!

28 05, 2021

7 Accounting FAQs for Small Business Owners

By |2021-08-25T17:04:25+00:00May 28, 2021|0 Comments

To us, every small business is a big deal! That means we strive to give each business—and their owners—the best possible service. So, if you ever have any questions, we aim to provide all the answers. In fact, we’ve compiled another resource for you: this list of accounting FAQs for small business owners. Read on to learn more!

Q. Why choose a live accountant over filing software?

A. Tech can be smart—but it doesn’t have the same critical thinking skills or the nuance that we do. You want someone who can pore over your files in detail. Not to mention, if you have questions, an accountant can explain the answers—like we’re doing now. Plus, unlike software, we actively want to give you the best possible service—and we’ll go the extra mile to do so.

Q. What records should I be keeping?

A. One of the biggest accounting FAQs for small business owners involves records. As a small business owner, the standard records you keep should include:

  • Payroll statements;
  • Credit card statements;
  • Rent check records for your office or retail location, if applicable;
  • Inventory;
  • Accounts receivable;
  • Accounts payable;
  • Sales systems;
  • Software;
  • Receipts for purchases and expenses; and
  • Bank statements.

Remember: it’s better to store more records than you need, as opposed to fewer. Also, as a general rule of thumb, it is recommended to securely maintain all records for at least the last seven years that tax returns have been filed.

Additionally, you can also scan them to create digital copies just in case. If you require assistance, we can explain exactly what you’ll need to preserve for your tax planning services.

Q. How often will I be able to meet with my accountant?

A. Unfortunately, clients generally only meet with their accountant once a year. However, we like to meet with our business owners from one to three or more times a year after mid-year to ensure we can minimize taxes. After all, our main goal is ensuring that you have the tools to succeed.

Q. Can accounting services improve my earnings?

A. Yes! And we’ll tell you why. Some tax planning professionals—like us—will create year-end projections for their clients. Those projections will show you the profits you make and the losses you incur over time. They’ll also compare them with the money put toward the people you employ and the goods you buy. That way, you can learn what strategies work—and which ones need refining.

Q. Is my contract cost due all at once?

A. Paying bills in one go can cause unnecessary stress! Some CPA firms may expect the contract cost in a single payment—but not us. We will happily work with you to create a workable contract payment schedule—including an affordable monthly plan.

Q. Do I need to know what expenses apply for tax deductible status off the top of my head?

A. Nope! No need to worry—your accountant will have the information you need. Since this area changes frequently, we make it our business to stay current. Just remember to keep documentation of purchases and expenses at the ready.

Q. Can Todd Greene work with my small business?

A. Absolutely! We work with small business owners throughout the year to provide tax planning services, year-end projection calculations, and custom-tailored advice.

Summary

Asking questions creates a strong foundation for future success. If you have queries beyond these accounting FAQs for small business owners, let us know! We’d love to fill in the blanks—and to assist you with your tax planning and preparing needs. For more on our services—and how they work—visit our blog. As for getting started on your services, call us at 704-919-3220 or contact us here for a free consultation.

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